Axis Bank Receives 'Buy' Rating from MarketsMOJO for Strong Lending and Financial Performance

Axis Bank, one of the leading private banks in India, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as a result of the bank's strong lending practices and impressive financial performance.
One of the key factors contributing to the 'Buy' rating is the bank's low Gross NPA ratio of 1.58%. This indicates that the bank has been able to maintain a healthy loan portfolio with minimal non-performing assets. Additionally, the bank has shown strong long-term fundamental strength with a CAGR growth of 86.86% in net profits.

In the last three consecutive quarters, Axis Bank has declared positive results, with its Gross NPA being the lowest at 1.58%, NII (Net Interest Income) being the highest at Rs 12,532.15 crore, and interest earned being the highest at Rs 27,961.14 crore. This showcases the bank's consistent performance and strong financial position.

From a technical standpoint, the stock is currently in a mildly bullish range and has shown improvement from a sideways trend on 22-Apr-24. The RSI and Bollinger Band technical factors are also bullish, indicating a positive outlook for the stock.

Moreover, with a ROA of 1.6 and a price to book value of 2.3, the stock is currently trading at an attractive valuation. It is also trading at a fair value compared to its average historical valuations. In the past year, while the stock has generated a return of 22.31%, its profits have risen by 15.3%, resulting in a PEG ratio of 1, which is considered favorable.

Another positive aspect of Axis Bank is its high institutional holdings at 83.96%. This indicates that these investors have better capability and resources to analyze the fundamentals of the company, making it a reliable investment option.

However, it is important to note that the stock has underperformed the market in the last year, generating a return of 22.31% compared to the market's return of 38.02%. This could be a potential risk for investors to consider.

In conclusion, with its strong lending practices, impressive financial performance, and positive technical indicators, Axis Bank is a 'Buy' according to MarketsMOJO. However, investors should also be aware of the potential risk of underperformance in the market.